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Coinbase Receives SEC Ä¢¹½´«Ã½lls Notice Regarding Intent to File Suit Over Crypto Offerings

Posted on March 30th, 2023 at 1:20 PM
Coinbase Receives SEC Ä¢¹½´«Ã½lls Notice Regarding Intent to File Suit Over Crypto Offerings

From the desk of Jim Eccleston at Ä¢¹½´«Ã½ 

Coinbase Global announced that it has received a Ä¢¹½´«Ã½lls Notice from the Securities and Exchange Commission (SEC) declaring the regulator’s intent to file an enforcement action against the cryptocurrency exchange.

SEC Chairman Gary Gensler repeatedly has taken the position that numerous tokens and products currently offered by cryptocurrency companies constitute securities that must be registered with the regulator. Coinbase announced that the notice implicates certain parts of its exchange as well as the staking service Coinbase Earn and Coinbase Wallet. A Ä¢¹½´«Ã½lls Notice provides an opportunity to rebut the SEC’s accusations.

Coinbase announced that its products and services will continue to operate as usual for now, according to Paul Grewal, chief legal officer of Coinbase. Coinbase has maintained the position that its tokens and products do not constitute securities. Coinbase previously received a Ä¢¹½´«Ã½lls Notice in 2021 when the SEC warned the company that its proposed “Lend” product, which would have permitted users to earn interest by lending out their cryptocurrency holdings, constituted security. Coinbase subsequently abandoned the launch of its “Lend” product.

 

Ä¢¹½´«Ã½ LLC represents financial advisors and investors nationwide in securities, employment, transition, regulatory and disciplinary matters.

Tags: eccleston, eccleston law

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